9 Colo. Code Regs. § 2504-1-6.806
Current through Register Vol. 48, No. 1, January 10, 2025
Section 9 CCR 2504-1-6.806 - INTEREST [Rev. emergency eff. 4/5/13; permanent 7/1/13]Collection of interest is optional for county Child Support Services Units. If a county chooses to collect interest, the following rules shall apply.
A. Interest on support collections that are deposited in a financial institution in interest bearing accounts shall be used to reduce administrative costs as prescribed by the State Department.B. Interest collected through support arrears/debt shall be considered a support collection and shall be used to reduce the UPA/UMP balances or, for non IV-A cases, paid to the family. 1. In order to collect interest on a Colorado order, the interest rate will be calculated as prescribed by the State Department on the balance past due at the current interest rate in effect as set forth in Sections 5-12-101 and 14-14-106, C.R.S.2. Interest on arrears balances will be calculated for a specific amount of arrearages/debt covering a specific period of time. The amount of interest will be listed separately from the amount listed for child support arrears/debt and shall be added to the IV-D ledger on the automated child support enforcement system using the appropriate interest adjustment reason codes. The two figures will be added together to show the total amount of judgment or non-judgment balances.3. A county may charge interest on a Colorado child support order according to statute. If a county intends to calculate interest, it must:a. Send a written notice to the obligor or his/her attorney of record, if one exists, that interest will be assessed on the order.b. Only assess interest beginning with the date of the notice referenced in paragraph a, of this section.c. Complete an updated interest calculation every six (6) months for all cases where notice, in paragraph "a" of this section, was provided and shall provide written notification of the amount of interest assessed to the obligor or his/her attorney of record, if one exists.d. Notify the responding agency in an initiating reciprocal action, at least annually, and upon request in an individual case, of interest charges, if any, owed on overdue support.4. The county Child Support Services Unit may waive the collection of interest if it wishes to use interest as a negotiating tool to reach a payment settlement on both public assistance and non-public assistance cases.5. Counties must collect interest on interjurisdictional cases if they are enforcing another jurisdiction's order and the jurisdiction requests collection of interest.39 CR 23, December 10, 2016, effective 1/1/201740 CR 21, November 10, 2017, effective 12/1/201742 CR 11, June 10, 2019, effective 6/30/201943 CR 17, September 10, 2020, effective 9/30/202043 CR 21, November 10, 2020, effective 12/1/202044 CR 23, December 10, 2021, effective 1/1/202245 CR 01, January 10, 2022, effective 3/1/202246 CR 11, June 10, 2023, effective 7/1/2023